There was a good thread here a few days ago that asked a very similar question: Diesel engines were invented earlier, last longer, and produce more energy per liter/gallon. If all this is true, how did gasoline become the standard for most automobiles?. It discusses the difference between Europe and the US in some responses, so it should answer your question.

The main reason that diesels are more popular in Europe than the US is that European fuel prices are much higher and diesels are more efficient. Otherwise they have a number of disadvantages for passenger cars, such as being louder, harder to start in cold weather and dirtier. Newer diesels overcome many of these problems though. Also, diesels have great low speed torque, but their power curve isn't very good if you want acceleration.